Anecdotal stories don't tell the investor anything. The shopping mall I go to has seen two cafes, a fish monger, two nail places, and a sports store close in the last 6 months. None of these, other than the sports store (City Beach) and one café (Caffissimo), were franchises. The latter was garbage and deserved to die.
Fads/demographics/expectations change all the time. Mix this with poor market research and there is an almost 100% surety that businesses will go bust (or just close to move elsewhere).
I posted earlier that, according to the Small Business Assoc, 60% of all small businesses fail within 3 years. Ppl worry about a 10% annual turnover in RFG's franchises? Why should those small businesses be immune to failure (or change of heart)? Yes, the burden of franchise fees, etc, is a big one to carry, but then they are buying a brand, with all that entails. Its the franchisees' decision.
A quick scan of SEEK Business shows over 3,600 businesses for sale, the vast majority of them franchises, and those certainly not dominated by RFG brands. RFG are not an odd man out.
I think what the Fairfax article has done is shone a light on franchisee conditions, an area most ppl knew nothing about before but are now feigning being offended.
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